European Union (EU) lawmakers have formally approved legislation that will regulate the crypto industry across the 27-member bloc, according to a Bloomberg report. The 'Markets in Cryptoassets' (MiCA) regulation marks the first time that governments have attempted to regulate the cryptocurrency market on such a large scale. 

It is expected to come into force progressively, with stablecoin regulations, for example, set to apply from July 2024.

MiCA has been in development for three years, and it aims to provide a regulatory framework for companies offering crypto services in the EU. The legislation has been welcomed by some crypto executives as a more constructive approach than the US's enforcement-based approach, but critics have argued that it might be outdated before it has a chance to help the sector, given the fast pace of technological change in the cryptocurrency market.

Some MEPs have listed out their concerns and called for MiCA to be updated to address the significant regulatory challenges that lack attention. The legislation requires any company offering crypto-related services in the EU to gain registration in one of the bloc's member states, which will allow them to operate across the entire bloc. 

The European Banking Authority and the European Securities and Markets Authority will assume responsibility for ensuring that crypto platforms abide by the rules, including adequate risk management and consumer protection.